CoreCivic director Lappin sells $684,586 in stock

BRENTWOOD, Tenn.—Lappin Harley G., a director at CoreCivic, Inc. (NYSE:), recently sold a portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Lappin sold 28,277 shares of CoreCivic's common stock on November 11. The shares were sold at an average price of $24.21, resulting in a total transaction value of approximately $684,586.

Following the sale, Lappin retains ownership of 65,229 shares in the company. The transaction was executed in multiple trades at prices ranging from $24.1625 to $24.3048, as noted in the filing. This sale comes as part of routine stock transactions by company insiders.

In other recent news, CoreCivic has witnessed a series of developments that may interest investors. The company's third-quarter results for 2024 exceeded expectations, attributed to robust occupancy gains and improved labor cost management. CoreCivic also revised its guidance upward, reflecting a strong occupancy outlook and the anticipation of enhanced profitability. The company reported a 2% revenue increase in Q3 2024, reaching $491.6 million, and a 23% rise in normalized funds from operations (FFO) per share to $0.43.

Jones Trading upgraded CoreCivic's stock rating from Hold to Buy, anticipating growth opportunities for the company, particularly with the new administration's focus on addressing unauthorized migration and bolstering criminal justice enforcement. The firm expects CoreCivic's largest customers, including Immigration and Customs Enforcement (ICE) and the US Marshals Service, to receive increased appropriations following the January inauguration.

CoreCivic is preparing to activate 18,000 vacant beds in response to potential increased demand. The company has updated its 2024 financial guidance, expecting an adjusted EPS between $0.69 and $0.75 and normalized FFO per share between $1.59 and $1.65. CoreCivic has also repurchased 4 million shares and maintains a total liquidity of $365 million, with no debt maturities until 2027. These are some of the recent developments within the company.

InvestingPro Insights

CoreCivic's recent insider sale by Director Lappin Harley G. comes amid a period of strong performance for the company's stock. According to InvestingPro data, CoreCivic has seen impressive price returns, with a 56.85% increase over the past month and a 66.95% gain over the last three months. This surge has brought the stock to 85.75% of its 52-week high, reflecting significant investor optimism.

The company's financial health appears robust, with a market capitalization of $2.36 billion and revenue of $1.97 billion over the last twelve months as of Q3 2023. CoreCivic's profitability is also noteworthy, with an EBITDA of $331.98 million and a gross profit margin of 24.34% for the same period.

InvestingPro Tips highlight that CoreCivic has a perfect Piotroski Score of 9, indicating strong financial strength. Additionally, five analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for the company's future performance.

However, investors should note that the stock's RSI suggests it may be in overbought territory, and it's trading at a high P/E ratio of 31.32. This valuation metric, combined with the recent insider sale, may prompt some investors to carefully consider their positions.

For those seeking a deeper analysis, InvestingPro offers 12 additional tips for CoreCivic, providing a more comprehensive view of the company's prospects and potential risks.

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